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KEY POINTS FROM SERVICES SETA DISCRETIONARY GRANT POLICY

1. Background

This document sets out how the Services Sector Education and Training Authority (SSETA) will allocate and

fund Discretionary Projects for the 2014-‐15 Discretionary Grant window. The requirements outlined in the

document are based on:

• SETAs Grant Regulations (No.35940 of 03 December 2012),

• Amendment to the SETAs Grant Regulations (No. 36655 of 15 July 2013)

• DHET Guidelines on the Implementation of the SETA Grant Regulations

• The Skills Development Act, (Act 97 of 1998) as amended

• The provisions of the Skills Development Levies Act (Act 9 of 1999) as amended, which stipulates

the processes for the management and disbursement of funds received as levy income

• All other applicable legislation and policies.

The Skills development legislation and policies are primarily intended to ensure that relevant training,

education and development strategies and programmes are implemented to improve the skills level of the

South African workforce and the unemployed.

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2. Purpose

The purpose of the Services SETA Discretionary Grant policy is to provide the basis for the Services SETA to

disburse discretionary grants to its stakeholders, in line with the criteria set out in the Grants Regulations,

ensuring that the skills levy is effectively targeted to meet the skills needs of employers and employees in

the services sector and also achieve national objectives as set out in the National Skills Development

Strategy (NSDSIII).

All stakeholders funded by the Services SETA will be required to meet the requirements set out in this

document.

3. Eligibility for funding from Services SETA discretionary grant

It is the intention of the SSETA to ensure a fair and equitable distribution of discretionary funds. The

aim is to implement the Sector Skills Plan that has been agreed by the Accounting Authority after

engagement with sector stakeholders. It is important that all companies, including small and micro

enterprises, are able to benefit from SSETA funded programmes.

Project proposals addressing one (or several) of the following themes will be eligible for funding:

• PIVOTAL programmes delivered through public education and training institutions.

• Learning interventions aligned to SAQA-‐registered qualifications and unit standards where such

qualifications and unit standards are available, and where the programme addresses a critical or

scarce skill as set out in the SSP.

- All funded programmes are strictly for learners to attain Services SETA or Services SETA OFO

related qualifications with the exception of artisans and employees of Temporary Employment

Services companies.

- Short skills programmes are strictly for employed learners of companies/organisations within

the Services sector

• Artisan training whereby the company enrols an apprentice, ensuring that s/he is exposed to

theoretical learning, workshop training and practical work experience, the combined programme

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culminating in a trade test.

• The provision of a period of workplace learning for a student who must do practical work as part of

his/her qualification, or in order to gain professional registration after qualifying.

• The provision of a structured work placement for learners who have completed a qualification

regarded as a scarce skill, and who is seeking practical experience in such an occupation in the form

of an internship.

• Enrolment of an unemployed young person in a learnership or employed staff member in a skills

programme that addresses a scarce or critical skills need.

• Provision of basic education services to adults within the Services SETA sectors, with the aim to

improve their ability to be enrolled in full or part-‐qualification programmes within the sector

• Recognition of prior learning (RPL) for employees to acquire a formal recognition of their skills

acquired through experience.

The Services SETA will not provide grant funding for:

• Projects that have already commenced prior to the approval of the application.

• Set-‐up costs, e.g. start-‐up costs.

• Capital expenditure, e.g. building costs, equipment such as computers, etc.

• Existing operating expenses e.g. salaries of current employees who will undergo training.

• Organisational policy development.

• Interventions that result only in “awareness” for participants.

• Employees who are employed by companies that are not operating within the Services Sector or are

not SSETA member companies.

4. Targeted beneficiaries

Services SETA discretionary funding is aimed, in the main, to benefit designated groups, including:

- Black South Africans - Women - People with disability - BBBEE companies - SMMEs

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- Service sector non-‐levy paying entities, NGOs, NPOs and CBOs - Youth - Cooperatives

5. Criteria for the allocation of Discretionary Grant funds

Depending on the availability of funds and at the sole discretion of the SSETA, the following criteria will apply in the SSETA’s allocation of discretionary funding • Application forms and required supporting documents must be submitted online, via the 2014-‐15

Discretionary Grant application portal.

• The Services SETA will spread its funding across learning programmes that cover both employed and

unemployed learners

• Applications targeting and/or involving designated groups will receive priority

- The Services SETA commits itself to a dedicated focus on learners with disability. A minimum of

4% of total learner enrolments must comprise disabled learners.

- Services SETA learner enrolments will more strongly focus on equity imperatives such as

women (55%), youth (18-‐35 years) (55%), and HDI (85%), through dedicated or integrated

project strategies.

• SSETA will make efforts to ensure geographical and sectoral allocations

• Applications that represent significant capacity to develop and place learners. This criterion is not

designed to counter or negate the SSETA’s strategic imperative to work with and promote delivery of

projects with small businesses, which will always be preferred.

• Applicants with prior skills development experience and/or credibility within the Services SETA or

other SETAs.

• Applicants that are new to working and delivering joint funded projects with the Services SETA

and/or SETAs, will be accommodated.

• The Services SETA may conduct due diligence visits and exercises prior to allocating some or all

projects applied for.

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6. Discretionary Grant Funding Framework

The Services SETA Board approved implementation of a performance based funding model rather than the

tranche-‐based model used in the past. This means that successful applicants will only be paid on

presentation of an invoice. Invoices will be based on work done and should be accompanied by evidence

that an activity claimed for has indeed been conducted. For example, when claiming learner stipend,

attendance registers will be required. Amounts invoiced will be based on an approved budget breakdown,

to be signed off as part of the contracting process.

The Services SETA Board approved unit costs for use in this Discretionary Grant allocation are shown in

the table on the following page.

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Learning program Unit cost/learner Explanatory notes

Learnerships

Unemployed Learnerships (18.2) R36 000 Inclusive of learner stipend of R1,500 x 12

months

Artisans

Apprenticeship and trade test R46 450 Annual cost for a three year program:

R139,350/3

Assessment and trade test R4 500 Inclusive of all costs including trade tests

Internship

Unemployed entering

internships/workplace experience

R36 000 Inclusive of learner stipend of R2,500 x 12

months

FET college interns (part of

qualification)


months for practical learning

FET graduate placement (NCV) R24 000 Inclusive of learner stipend of R1,500 x 12

months

Work integrated learning

(Universities)


months for practical learning

Bursaries

Employed (NQF 5 and higher) R35 000 Single year; funding provided at actual cost

up to maximum value indicated

Learnership Employed (18.1) R18 000 No learner stipend

Unemployed R55 000 Single year maximum for unspecified

qualifications

Adult Education and Training R6 000 Annual cost per learner

Recognition of Prior Learning R6 500

Skills programme

Employed R8 100

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